Lighting Fixtures Market

Market Overview

The global lighting fixtures market size was valued at USD 132.43 billion in 2023. It is estimated to reach USD 185.46 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2024–2032).

A light fixture or luminaire is an electrical instrument that contains and illuminates electric lighting. There is a fixture body and one or more lamps in every light fixture. The bulbs could be in sockets for simple replacement or hard-wired in the case of some LED fixtures. Moreover, fixtures may contain a lighting control switch linked to the lamp body or the power line. Certain permanent lighting fixtures, such as dining room chandeliers, rely on a wall switch rather than having a switch on the fixture itself.

Fixtures need to be connected to an electrical source of power, usually AC mains power, though some run-on batteries for camping or emergency illumination. Direct wiring is used for permanent lighting fixtures. A plug and wire into a wall socket are on portable lamps. Other elements of light fixtures include reflectors for light direction, apertures (with or without lenses), exterior shells or housings for lamp alignment and protection, electrical ballasts or power supplies, and shades to dilute the light or direct it toward a workspace (e.g., a desk lamp).

Market Dynamics

Global Lighting Fixtures Market Drivers:

Robust Growth in the Construction Industry

Increasing construction activities worldwide, especially in the commercial sector, have fueled the lighting fixtures market. There is a high demand for lighting fixtures in emerging economies across Asia-Pacific, Africa, and Latin America. This can be attributed to growing investments in the construction industry and increased focus on infrastructural development in the residential, commercial, utility, and public sectors. Similarly, the United Nations has estimated an increase in population from 7.5 billion in 2017 to 8.5 billion by 2030. The growing population will positively impact the construction industry, boosting the lighting fixtures demand.

Rapid Change in Lighting Technology

The lighting industry is rapidly moving from conventional lighting technologies, such as fluorescent and incandescent lighting, to energy-efficient and advanced lighting systems. Rising consumer awareness regarding energy conservation and strict regulatory norms by governments worldwide have increased the demand for advanced lighting fixtures. The demand for different colors, lighting distribution, color temperatures, and consistency will drive the market over the forecast period.

Additionally, advanced lighting help create aesthetically pleasing environments and deliver higher performance than conventional lighting systems. Consumers mainly prefer innovative lighting fixtures and products as they are an important component of home décor. Advanced lighting fixtures increase buildings' performance and create minimal environmental impact. In the U.S., the government has made using incandescent lamps illegal. Hence, the demand for advanced lighting fixtures is slated to be particularly high in the residential sector, driving market growth.

Global Lighting Fixtures Market Restraint:

Complex Purchasing Decisions and High Initial Investment

Initial installations of LED fixtures need high investments as they are more expensive than traditional fluorescent and incandescent lighting. LED lighting fixtures are more costly due to their complicated assembly, thermal design, and raw material inputs. Due to such initial costs, an average consumer might prefer conventional lighting fixtures. In addition, purchasing decisions on lighting fixtures are much more complex than other electrical goods since the customer base consists of diverse users, such as designers, architects, electrical engineers, lighting contractors, and common households. With their advantages, integrated LED lights also present the limitation of the LED's lifecycle. Such factors hinder the market growth.

Global Lighting Fixtures Market Opportunities:

Increasing Demand for Wireless Technologies

Key players in the market are significantly focused on integrating their products with wireless technologies. Wireless solutions can be operated through smartphones, offering energy and efficiency savings. Consequently, major companies are attempting to capitalize on this opportunity by incorporating technology and offering innovative solutions to acquire a competitive advantage in the market for lighting fixtures.

Additionally, there has been an increase in the demand for smart homes, especially in developed countries like the U.S., Germany, the U.K., and France. These smart home projects require smart lights with Wi-Fi-connected solutions and wireless technology, presenting numerous lucrative opportunities for players in the lighting fixtures market. The increase in demand for advanced light fixtures is opening new avenues for manufacturers of lighting fixtures.

Regional Analysis

Based on region, the global lighting fixtures market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global lighting fixtures market shareholder and is anticipated to exhibit a CAGR of 4.4% during the forecast period. Growing urbanization and electrification are widening the scope of lighting fixtures in this region. Rising awareness about using energy-efficient LED lighting among consumers in developing countries, including China, India, and Bangladesh, is accelerating the market growth in this region. The growing popularity of China, Thailand, India, Sri Lanka, and Maldives as tourist destinations is expected to boost the hospitality industry and spending on property renovations in this region. This growth will likely create new opportunities for using the product in the Asia-Pacific.

In addition, the growing upper middle-class population in emerging economies like China, Thailand, Indonesia, and India is expected to boost the demand for high-end decorative lights soon. Moreover, Asia-Pacific housing construction is significantly increasing due to the growing population. Based on a report by World Population Review, Asia held 60% of the world's population. This scenario holds strong growth potential for the lighting fixture market.

North America is estimated to exhibit a CAGR of 4.2% over the forecast period. The rising penetration of smart lights with Bluetooth-enabled audio systems, air purifiers, and air conditioning for home décor is creating robust opportunities for the lighting fixtures market in the region. Adequate electrification in each country, including the U.S., Canada, and Mexico, has positively influenced the adoption of LED lighting. North America is characterized by the presence of many hotels, shopping malls, and restaurants, which contributes to the growing product demand in this region to reduce operating costs. According to the blog by Seattle Business Magazine, over 116,000 malls were located in the U.S. alone. Most of these malls spent ample money on lighting fixtures for decoration, primarily wall-mounted fixtures, to ensure a welcoming ambiance for the customers. This has been creating opportunities for the product in these commercial constructions.

Europe is predicted to grow substantially during the forecast period. Increasing consumer preference for luxury home decoration products with an aesthetic appeal in the major markets, including the U.K., Germany, and France, is expected to remain a significant factor driving the growth of the European regional market. Rising spending on installing smart lighting by numerous associations in both public and private sectors, including the UK-based Lighting Industry Association and Belgium-based Lighting, also drives regional market growth. Increasing consumer adoption of advanced wireless technologies such as Bluetooth and Wi-Fi fuels the demand for portable lighting fixtures in Europe.

Furthermore, the increasing number of luxury homes is driving the LED lighting market in this region. The expansion of the market is a result of numerous initiatives the European Union (EU) undertook to build smart city infrastructure throughout the region. For instance, the Humble Lamppost plan helps save USD 2.46 billion annually on electricity expenditure, as more than 60 million streetlights that were over 25 years old have been replaced with LED devices.

The Central and South American regions have seen strong performance in the hospitality sector. The region's diversity, natural resources, and government promotions have been boosting the growth of tourism and hence, the hospitality industry in this region. According to the Travel and Tourism Competitiveness Index, World Economic Forum, six Latin American nations feature in the top 50 most competitive cities in the world. The expansion of the hospitality sector has boosted the luxury hotel industry in this region. The emerging trend of eco-luxury hotels is anticipated to propel the growth of the luxury hotel industry in Central and South America. As a result, the importance of lighting fixtures has been rising in decorating luxury hotels and food sectors.

South Africa, the UAE, Saudi Arabia, Oman, and Egypt are the major markets for producing and consuming lighting products. The rising number of luxury hotels has fueled this region's demand for smart lighting. In April 2019, Marriott International planned to add 19 new properties and over 100 new properties by 2023 in this region. This will likely create an opportunity for the product in the Middle East and Africa in the upcoming years. Government initiatives to create smart cities have propelled this region's market growth. The government has installed smart street lighting to save energy and reduce expenditure.

Segmental Analysis

The global lighting fixtures market is segmented by source, product, distribution channel, and application.

Based on the source, the global lighting fixtures market is segmented into incandescent, fluorescent, LED and OLED, Halogen, and Others. 

The fluorescent segment owns the highest market share and is predicted to exhibit a CAGR of 3.6% during the forecast period. Fluorescent lamps are commonly found with integral ballasts and screw bases; these lamps are popular and often used in residential fixtures. They are also used for task lighting, such as garages and under-cabinet fixtures, as well as for lighting large areas in commercial buildings. According to the U.S. Department of Energy, fluorescent lamps use 25%-35% less energy to produce the same quantity of light as incandescent lamps. In addition, they also last about ten times longer than incandescent lamps (7,000-24,000 hours). Compared to incandescent bulbs, which produce light from a metallic filament, fluorescent lamps use gas to create light, which uses less energy.

Based on product, the global lighting fixtures market is bifurcated into ceiling, pendant and chandeliers, wall mounted, portable, and other lighting fixtures. 

The ceiling lighting fixtures segment dominates the global market and is estimated to exhibit a CAGR of 3.7% over the forecast period. Various ceiling lighting fixtures in different colors, shapes, and patterns are available for room decoration based on a customer's budget. Ceiling lighting fixtures save space, as the fixture is fixed inside the ceiling. In addition, ceiling lighting fixtures diffuse light over a large area, which is highly beneficial in lighting. These fixtures are available at an affordable price range, driving their adoption in residential and commercial settings. Lighting must be reliable, bright, uniform, long-lasting, and energy efficient in commercial settings. Thus, many commercial places, such as office buildings, have drop ceilings, which are secondary ceilings installed underneath the main structural ceiling.

Based on distribution channels, the global lighting fixtures market is divided into offline and online channels. 

The offline channel segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 4.11% over the forecast period. Offline distribution channels such as distributors, dealers, and retailers are used for selling various kinds of lighting fixtures globally. Most consumers prefer purchasing these products from offline electric stores to get assistance with product installation and after-sales support. Brick-and-mortar stores are the most preferred distribution channel in the market, as this channel enables consumers to interact with product specialists and get detailed instructions for proper product installation. In addition, many consumers prefer offline stores for making purchases as they can physically examine the product. Corporates, manufacturing industries, and government organizations prefer to directly tie-up with smart lighting manufacturers. This is anticipated to propel this segment further in the upcoming years.

Based on application, the global lighting fixtures market is divided into residential, commercial, and industrial. 

The commercial segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.1% over the forecast period. Lighting fixtures are vital to interior design as they improve the space's aesthetic appeal and create the right mood and ambiance. Lighting fixtures illuminating a room can create a safe and comfortable environment and add a touch of style to the interior décor. Such fixtures play a key role in creating the perfect ambiance in commercial spaces like restaurants, pubs, cinema halls, hotels, malls, retail shops, offices, libraries, and museums. Using the right lighting fixtures to suit varied tastes and personalities has become a key strategy to augment customer experience.

The commercial sector increasingly adopts lighting fixtures, particularly LED light modules, which consume 80% less energy than conventional lights. Similarly, increasing smart city development projects and government support for energy-efficient products will help improve the demand for commercial lighting fixtures.

Recent Developments

• March 2023- Cree LED introduced new J Series 5050C E Class LEDs for directional lighting applications with ground-breaking light output, high efficacy, and extended lifetimes.
• June 2023- Olympia Lighting, an industry leader in LED lighting solutions, announced the launch of its new Vapor Sealed LED Fixtures. These energy-efficient luminaires are designed to provide industrial and commercial applications with long-lasting and dependable illumination solutions.